
Why do child care providers need fair pay?
Child care providers are dedicated professionals who should be paid fairly and supported for their dedication, expertise, and talent. Fair pay for child care providers is not just a matter of economics; it’s a matter of respect for their essential role in shaping a brighter future for all.
The state has underpaid providers for delivering publicly funded child care to families with low incomes for too long. Across the state, providers are being forced to close their doors and the poverty-level wages discourage people from entering the field at a time when over 2 million children are eligible for affordable care. When California underpays child care providers, families don’t have the child care they need to work and support their families.
By not giving child care providers respect and fair pay, California policymakers uphold the legacy of enslaved Black women who cared for white children without pay and support discriminatory laws that exploit Black, Latine, and immigrant women.
Until child care providers have fair pay, we will not have an equitable society.
What is fair pay for child care providers?
Fair pay would mean that child care providers can cover 100% of their full costs for operating a sustainable child care business and take home a living wage, resulting in stability and growth for themselves and the children in their care.

Many costs go into providing enriching care for California’s diverse children and operating a sustainable program that the state can rely on in the future. Some costs include:
- Take-home pay for providers
- Certifications and trainings
- Mortgage or rent
- Utilities
- Materials and supplies
- Healthy food
- Paid sick time
- Insurance
- Staff pay and benefits
- Supports for dual language learners and children with disabilities
- Family engagement activities
- Child development materials
- Operating reserves
- Transportation
- And much more!
Read the full list of approved cost elements here.
What is California doing to fairly pay child care providers more fairly?
California is going through a process to change how the state pays providers who deliver publicly funded child care services for families. People call this “rate reform.” This new way to pay providers will be based on providers’ costs and is called an “alternative methodology.” This new way to pay providers promises to be fairer than the current method by offering more transparency and getting us closer to a fair, sustainable wage.
Read details about the process by going to our Fair Pay FAQ page.
What would it look like if California implemented an anti-racist policy?
An anti-racist policy would mean California child care providers who deliver publicly funded child care services are paid at least 100% of the full cost of care by the state as soon as possible. It is vital that providers have enough to cover their costs and support their own families with dignity. This would acknowledge a longstanding injustice in child care.
Adequately paying child care providers, who are predominantly women of color, for the enriching care they already provide our young children is essential and long overdue. Families will have more options for their children, and California’s communities will be stronger.
The state must commit to implementing anti-racist and fair policies so that everyone involved in child care can thrive. This is a critical step towards respecting the child care profession and paying all providers a fair, sustainable wage.
What are some questions that must be answered for California to fairly pay providers?
- Will the state and Child Care Providers United agree on how much to pay providers and how quickly to implement that pay change?
- Will the Federal Administration for Children and Families (ACF) approve how much the state chooses to pay providers?
- When will the state fully implement a new way to pay providers for publicly-funded child care?
- How much of the cost of care will the state choose to pay providers?
- Will the Legislature and the Governor allocate enough funding in this state budget to cover the costs of transitioning to this new payment method?
- Will the Legislature and the Governor include the necessary ongoing funding in this state budget to begin paying providers this fairer pay – starting July 1, 2025, and into the future?
How can I join this effort?
Click here to sign up for email updates. We will contact you with the latest action items to support fair pay for child care providers in California.
Helpful Resources:
- California Department of Social Services Rate and Quality Webpage
- California Child Care Development Fund State Plan Webpage
- Child Care Providers United Current Agreement with California
- Child Care Providers United Fair Pay Webpage
In the News & Reports:
- California’s Child Care Providers Need a Substantial Pay Raise – CA Budget and Policy Center
- The Multilayered Effects of Racism on Early Educators in California : An Examination of Disparities in Wages, Leadership Roles, and Education – Center for the Study of Child Care Employment
- The Emotional and Physical Well-Being of Early Educators in California – Center for the Study of Child Care Employment